GVIP Dividend-Like Income Using Covered Calls

With GVIP at 56.55, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield

Annual Premium

Cents/Day

3%

1.70

0.5

5%

2.83

0.8

10%

5.66

1.5

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples: